For 2021/2022/2023 (and years prior to 2020):
Unemployment benefits are considered taxable income and should be reported on your tax return. If you received unemployment compensation, you should receive Form 1099-G with an amount in box 1 that reports the total amount you collected during the year.
For tax year 2020 only:
The first $10,200 of unemployment income can be excluded from your federal income. If married filing jointly and both spouses received unemployment, the amount increases to $20,400. The AGI must be less than $150,000 for both single and joint filers.
If the taxpayer has already filed for 2020, they will be affected. At this time, the IRS is still determining how the adjustment will be handled. The IRS does not expect returns that have already been filed to be paused or interrupted by this change.